The Euro is holding near new 2020 high (1.1546) early Wednesday’s trading, following 0.7% advance on Tuesday (the biggest one-day gain since 4 Jun) and close above previous year’s high (1.1495). Strong risk sentiment on hopes that global recovery will accelerate after the EU agreed on new stimulus and the US officials are in talks about the fifth package of stimulus, continues to inflate the single currency. Last week’s breach of pivotal Fibo barrier at 1.1369 (38.2% of 1.2555/1.0635, 2018/2020 fall) and yesterday’s close above former 2020 high (1.1495) generated strong bullish signals. Bulls focus 2019 high (1.1569) and 1.1595 (50% of 1.2555/1.0635), with next strong barriers at 1.1739 (monthly cloud base) and 1.1822 (Fibo 61.8%) expected to come in sight. Bullish daily studies so far ignore overbought conditions but positioning for further advance could be expected in coming sessions. Former 2020 high (1.1495) and rising 5DMA (1.1465) mark supports where dips are expected to find ground, while break of 1.1422/06 zone (10 June former high/rising 10DMA) would delay bulls for deeper correction.
Res: 1.1549, 1.1569, 1.1595, 1.1676
Sup: 1.1519, 1.1465, 1.1422, 1.1406
